Have your eye on a property that costs more than what can be borrowed with a conforming loan? Then you may need a non-conforming “jumbo” loan. In this post, we will go over the benefits of jumbo loans. You may be surprised by just how many advantages they offer.
6 Benefits of Jumbo Loans in Boston
- Borrow above the conforming loan limits to buy your dream home. If you are shopping for a home with a conventional conforming loan, then you are restricted to the Fannie Mae and Freddie Mac conforming loan limits. While there are many beautiful homes that are affordable within those limits, there are many others that would require you to borrow more. That is especially true if you are in Massachusetts. Here, for example, are the conforming loan limits for Suffolk County, where Boston is located:
1 unit: $770,500
2 units: $986,400
3 units: $1,192,300
4 units: $1,481,750
According to Zillow, the average home value in Boston is $718,000. You can see that this value is quite close to the conforming loan limit for one unit. Since it is an average that means many homes in the Boston area require jumbo financing. With a jumbo loan, you may be able to borrow what you need to move into your dream home, rather than settling for a lower value property.
- The home you buy may be a better investment. In some cases, a jumbo loan may not only provide the means to buy a home you enjoy more, but also one that may be a better financial vehicle for your future. If you had to stick with a conforming loan, you might find yourself missing out on some lucrative opportunities.
- You may be able to purchase a home in a more desirable area. As we just discussed, a lot of homes in the Boston area require a jumbo mortgage. This is especially true in some of the nicest neighborhoods. A jumbo mortgage might also help you purchase a home that is close to your downtown workplace or local attractions and amenities.
- Down payments are more affordable than you think. How much money do you think needs to be put down at a minimum to buy a home with a jumbo mortgage? Many homebuyers would answer, “20%.” Some might even say “30%.” For a competitive borrower, a lower down payment may be possible. It is something we can help you look into during your consultation.
- The approval process is usually faster and easier than you realize. Just as it is common for homebuyers to overestimate down payments for jumbo mortgages, they also tend to overestimate what is involved with the application process. The process is similar to applying for a conforming loan, just with stricter requirements and sometimes a second appraisal.
- You can buy a home with a jumbo loan even as a first time home buyer. One more benefit of jumbo mortgages is that they are available to returning and first time homebuyers alike. Wherever you are on your journey of homeownership, a non-conforming loan may help you purchase your dream property.
Buy a Home with a Jumbo Loan in Boston or Beyond
Do you have more questions about jumbo mortgages? The loan experts at Style Mortgage can answer them. We also can walk you through the application process. If you are ready to get started, please call us today at (508) 223-5206 to schedule your jumbo loan consultation now. We work with homebuyers in Boston and throughout Massachusetts.
This information is intended for informational purposes only and is not an offer to lend. All applications are subject to approval.